Nexus Minerals (ASX:NXM) shares were trading as much as 21% higher today with news the company was on track to mark meaningful development progress at its newly farmed-in Pinnacles gold project in Western Australia.
Shares in the explorer were last trading at A$0.068, representing a 31% increase since the start of the week.
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Nexus has submitted a program of work for Pinnacles with approval expected by the end of the month.
This will be followed by a drill program in early November to be completed within the month with an aim to test depth extensions at the known high-grade mineralisation identified to date.
Some of the deepest reverse circulation drilling so far (about 150 metres deep) has yielded significant high-grade gold intersections including 6 metres at 17.4g/t gold. Mineralisation remains open at depth, and to the north and south along strike.
Encouragingly, geological modelling of the deposit reveals a significant high-grade core to th mineralised structure, with multiple repetitions of steeply dipping high grade ore shoots evident.
The increased investor support attached to momentum at Pinnacles builds on a share price jump recorded last month when Nexus signed into a farm-in and joint venture over the project with Saracen Mineral Holdings (ASX:SAR).
Under the deal, Nexus will be the sole manager of the Pinnacles and will be able to earn up to 85% of the project by satisfying a series of staged farm-in milestones with specific exploration expenditure commitments required to increase its interest.
Upon Nexus reaching 85% ownership, a contributing JV will be established, with each party contributing in proportion to its joint venture interest.
Upon establishment of any future mining operation on the Pinnacles tenement, the ability to access the Carosue Dam plant would eliminate the need for any processing plant capital.
Pinnacles contains a resource of 413,000 tonnes at 2.1g/t gold for 28,000 ounces of gold.
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